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25/01/2018
AGF and Oikocredit Signing Ceremony

Renewable Energy and Agriculture SMEs Set to Benefit from Renewed Partnership Between the African Guarantee Fund and Oikocredit

Nairobi, January 25, 2018 – Microfinance institutions (MFIs), agriculture and renewable energy businesses and cooperatives in Africa will now have access to more affordable finance as a result of a continued partnership between the African Guarantee Fund for Small and Medium-sized Enterprises (AGF) and social investor Oikocredit. The two entities, which have been in partnership since 2013, held a signing ceremony on January 25, 2018 in Nairobi, Kenya.

The guarantee of USD 10 million over 10 years falls under AGF’s Green Guarantee Facility and will enable Oikocredit to finance MFIs, agriculture and renewable energy SMEs and cooperatives serving low-income populations in Sub-Saharan Africa. This is in addition to an existing USD 8 million guarantee that has been in effect since 2013. Oikocredit has a strong commitment to financial inclusion, agriculture and renewable energy. In addition, the agreement comes with a technical assistance component under which Oikocredit will undertake various capacity building interventions with its partners.

Bart van Eyk, Oikocredit director of investments, said: “We are very pleased to commit to a further 10 years of partnering with AGF. The partnership supports the development of Africa’s potential in sectors we see as vital to delivering on our mission and leading the way in financial inclusion, agriculture and renewable energy. Our work with AGF aligns with Oikocredit’s mission of sustainably improving the quality of life of low-income households and communities.”

Felix BIKPO, AGF’s Chief Executive Officer stated, “AGF believes that the development of SMEs is one of the principal solutions to the growth challenges faced by African countries. This makes Oikocredit a partner of choice because of the synergies between our organizations. These include promoting access to finance in the SME space, job creation, and the empowerment of women and youth in business, with an ultimate goal of alleviating poverty in Africa.”

AGF’s primary mandate is to assist financial institutions in Africa to scale up their SME financing through the provision of partial loan guarantees and capacity development assistance. It seeks to bridge the gap – currently estimated at USD 150 billion – between Financial Institutions and SMEs. Since its establishment, AGF has signed close to USD650 million of guarantee agreements with over 80 Partner Financial Institutions in 40 African countries. Approximately 7,000 SMEs – of which 70% are owned or led by youths – have been able to access loans through AGF’s guarantees. In addition, AGF’s Green Guarantee Facility is expected to bring direct benefits in terms of climate change mitigation and adaptation as well as sustainable employment, poverty reduction and gender opportunity growth.

 

For more information, please contact:

Rehema Kahurananga: rehema.kahurananga@africanguaranteefund.com

Cell +254 718 930511

 

 

Ulrike Haug,

Communications manager, Oikocredit:

Telephone: +31 6 25 65 53 75 or email: uhaug@oikocredit.org

 

About the African Guarantee Fund

Officially launched on June 1, 2012, the African Guarantee Fund is a Pan-African non-bank financial institution created in 2011 by the African Development Bank (AfDB), the Danish International Development Agency (DANIDA) and the Spanish Agency for International Development Cooperation (AECID). It was recently joined by the French Development Agency (AFD) and the Nordic Development Fund (NDF).

About Oikocredit

Oikocredit has over 40 years’ experience funding organizations active in inclusive finance, agriculture and renewable energy. Oikocredit’s loans, investments and capacity building aim to enable people living on low incomes to sustainably improve their living standards. Oikocredit finances more than 780 partners in 70 countries, with total outstanding capital of over € 900 million.

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